Prime-West move

Press, 22 May 1986, Page 22

Prime-West move

Prime-West Corporation, Ltd, the diverse West Coast mining and retail group, has sold some mining equipment, plant, and mining licences previously owned by Sovereign Gold Mines, Ltd. Westside Traders, Ltd, a consortium of West Coast retailers, took up a 70 per cent Interest in Sovereign Gold Mines, then in receivership, last year, and the name of the new company was later changed to Prime-West Corporation, Ltd. Sovereign was suspended from Stock Exchange trading in July, 1984, but

Prime-West expects to rejoin the list next month. Prime-West announced yesterday that it had acquired interests in two mining partnerships through the agreement to sell the miping equipment, licences, and plant. .

“Prime-West will not participate in the results of the partnership but it will receive royalties on gross bullion recovered for seven years.”

Mr Brian Kreft, the advisory broker to PrimeWest and a partner of Forsyth Barr and Com-

pany, a Dunedin sharebroker, said last evening that the West Coast company felt that there was a need to be insulated from direct involvement in gold mining, but at the same time it wanted to retain interests in gold mining.

Mr Kreft said he considered that Prime-West still held about 30 per cent of the mining equipment and plant formerly owned by Sovereign Gold Mines.

The company’s objective was to also sell these as a part of reducing the direct exposure to gold mining, he said.